Cabinet approves release of additional instalment of DA to Central Government employees
New Delhi, October 21, 2021
The Union Cabinet today approved the release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from July 1, 2021.
This will represent an increase of 3% over the existing rate of 28% of the Basic Pay / Pension, to compensate for price rise, an official press release said.
"This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission," the release said.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs. 9,488.70 crore per annum, it said.
The decision would benefit about 47.14 lakh Central Government employees and 68.62 lakh pensioners, the release added.